This week saw significant regulatory shifts impacting the global crypto industry. First up, Australia’s financial regulator, the Australian Securities and Investments Commission, has issued guidance on virtual assets, which is likely to benefit stablecoin and wrapped token issuers and investors. Next, the UK Government announced its plan to institute a new crypto regulatory regime from October 2027. Lastly, the South African Financial Services Conduct Authority revealed that it had approved 300 CASPs, while also intensifying regulatory action against non-compliant firms.
To learn more, read on.
Australian regulator eases crypto rules for stablecoins and wrapped tokens
ASIC has eased its compliance requirements, offering regulatory relief to support innovation in stablecoins and wrapped tokens. This means that ASIC no longer requires intermediaries to hold separate Australian financial services licenses, market licenses or clearing and settlement facility licenses for these activities.
This formalized guidance follows October’s INFO 225, and aims to remove regulatory friction as the country transitions towards crypto exchanges being subject to the same licensing requirements as traditional financial instruments. The move slashes compliance costs and makes stablecoins far easier to use, and a new bill to this effect is currently before Australia’s parliament.
The announcement brings Australia in line with other jurisdictions that are refining crypto rules by striking a balance between oversight and flexibility as crypto products gain global traction.
Why this matters:
ASIC’s evolving regulatory position on cryptocurrencies, with considerable implications for stablecoins and wrapped tokens, provides clarity for investors and exchanges alike. Meanwhile, compliance teams will take note of the opportunities and responsibilities that the new rules entail for them.
Read more on Altcoinbuzz.
New UK crypto regulations set to launch in October 2027
The UK Parliament introduced a new law on Monday, December 15, 2025, which will see Britain start regulating crypto assets from October 2027. The new law extends existing financial regulations to companies involved in cryptocurrency, aligning Britain closer to the US model rather than the EU, which has built new financial rules for cryptocurrency.
The Financial Conduct Authority (FCA) is planning rules for trading, custody, and issuance, while the Bank of England has introduced proposals for regulating stablecoins. Both bodies have promised to finalize their rules by December 2026.
The head of the major crypto exchange, Gemini, commented that firms now have “long-awaited regulatory clarity” and are better equipped to meet the incoming expectations. Meanwhile, the UK Government added that the new plans will “make the UK a global destination for digital assets and attract more investment.”
Why this matters:
The UK regulatory timeline potentially positions Britain as a globally competitive hub for digital assets, attracting investment to compliant firms and alleviating uncertainty. With FCA and Bank of England rules due by October 2027, compliance teams can now start building their strategies to attain a competitive advantage, including over EU member states.
Read more on Reuters.
South African financial regulator approves 300 crypto service providers
Since its licensing regime came into effect in June 2023, the Financial Services Conduct Authority (FSCA) of South Africa has approved 300 Crypto Asset Service Provider (CASP) licenses out of 512 applications as of December 2025. At the same time, the FSCA is stepping up enforcement against firms operating outside the regulatory framework.
Applicants whose submissions were rejected may reapply, provided they demonstrate compliance with all licensing requirements. However, they must not conduct any CASP activities without a valid license in the meantime.
While intensifying enforcement action against unlicensed crypto operators, the FSCA is also supervising CASPs to ensure compliance with Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and Counter-Proliferation Financing (CPF) requirements under the Financial Intelligence Centre Act (FICA).
In August 2025, the FSCA established the Crypto Asset Supervisory Engagement Forum to enhance risk awareness and regulatory coordination across the sector, as well as to enable CASPs to develop a deeper understanding of the risks, trends, regulations, and challenges associated with providing crypto services.
The FSCA reminded the public that crypto assets are not recognized as legal tender in South Africa and that the authority’s mandate only covers financial services linked to crypto assets. The South African Reserve Bank does not currently classify cryptocurrencies as a form of currency.
Why this matters:
The South African FSCA’s two-pronged approach-approving 300 CASPs while intensifying enforcement- creates clear operational boundaries for compliant versus non-compliant firms in South Africa. Meanwhile, the recently established Crypto Asset Supervisory Engagement Forum offers compliance teams direct regulatory guidance channels, making proactive engagement essential for understanding evolving requirements.
Read more on IOL
